IVENS INSURANCE EXAM

An insured purchased a variable life insurance policy with a face amount of 50k. Over the life of the policy, stock performance declined and the cash value fell to 10k. If the insured dies, how much will be paid out?

$50,000

The commissioner has the power to preform ...

-Administer interpret and enforce the state insurance laws -examine and investigate any licensed person and insurer. - hold disciplinary hearing and issue orders.

In order to qualify for conversation from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?

5

All other factors being equal, which of the following individuals would receive the largest monthly check from a single premium straight life immediate annuity?

A 60 year old man

what documentation grants express authority to an agent?

Agents contract with the principal

what describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company?

Aleatory

What agent authority is also called "perceived authority?"

Apparent

Annuities differ from life insurance in what way?

Both annuities and life insurance are purchased with either singe or periodic premiums

What describes a situation in which an agent and policyholder act together to defraud the insurer?

Collusion

What includes info regarding a persons credit, character, reputation, and habits?

Consumer report

When does an agents license expire?

Every 2 years

what is true regarding the annuity period?

It may last for the lifetime of the annuitant

If a contract provides a set amount of income for 2 or more income with the persons stopping upon the first death of the insured, it is called a ...

Joint life annuity

An agent is selling a client a Variable life insurance policy and as an inducement shows the client a projection based upon shares dividends paid on a similar policy. This is

Misrepresentation

An individuals tendency to be dishonest would be indicative of a

Moral hazard

What is a definition of a unilateral contract?

One-sided: only one party makes an enforceable promise

Hazard is best described as...

Something that increases the risk of loss

What is the annuity period?

The period of time during which accumulated money is converted into income payments

What defines target premium in a universal life policy?

The recommended amount to keep the policy in force throughout its lifetime

Which of the following life insurance policies would be considered interest sensitive?

Universal Life

which of the following products requires a securities license?

Variable annuity

How often must insurers provide a current copy of the privacy policy and practices to each customer?

annually

What is a reinsurance manager?

any person who has authority to bind, or manages all of part of the assumed reinsurance business of a reinsurer and acts like an agent for the reinsurer.

Why is an equity indexed annuity considered to be a fixed annuity?

both types of annuities guarantee a specific minimum interest rate

an insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principals has the insurer violated?

consideration

which component increases in the increasing term insurance?

death benefit

what is NOT fundable by annuities?

death benefits

A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. what type of annuity products are they likely to use to provide those benefits?

immediate annuity

Annual renewal term policies provide a level death benefit for a premium that

increases annually

Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?

installments for a fixed period

what are equity indexed annuities?

invest on a aggressive basis to aim for higher returns. the current interest rate that is actually credited is often tied to a familiar index like the standard and poor's 500

A married couple's retirement annuity pays them $250 per month. the husband dies and his wife continues to receive $125 .50 per month for as long as she lives. when the wife dies, payments stop. what settlement option did they select?

joint and survivor

An insurance policy is considered a "new policy" if it has been in effect for what maximum time period?

less than 60 days since the issue

Which of the following is an example of a limited pay life policy?

life paid up at age 65

Under a pure life annuity, an income is payable by the company

only for the life of the annuitant

which of the following is another term for the accumulation period of an annuity?

pay-in period

an individual buys a flexible premium differed life annuity with 20 year period certain. what would his beneficiary receive if he died 5 years after beginning the annuity phase

payments for 15 years

The Gramm-Leah-Bliley Act was passed to

protect private customer info filed with a financial institution

installing deadbolt locks on the door of a home is an example of which method of handling risk?

reduction

Annuities can be used to fun which of the following?

retirement palns

What are examples of risk retention?

self insurance deductibles copayments

An insurance policy that only requires a payment of premium at it inception, provides insurance protection for the life of the insured, and matures at the insureds age 100 is called...

single premium whole life

Which of the following is a risk classification used by underwriters for life insurance?

standard

In a group policy, the employer may select all of the following...

the amount of insurance, the premium payor, and the type of insurance

When an annuity is written, whose life expectancy is taken into account?

the annuitant

When a fixed annuity owner pays a monthly annuity premium to the insurance company, where is this money placed?

the insurance company's general account

An insured wants to transfer his personal insurance policy to a friend. Under what conditions would this be possible?

the insured will need a written consent of the insurer

Any person who violates and effective order may be required to pay ....

twice the amount of any profit gained from violation

Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of

twisting

if only one part to an insurance contract has made a legally enforceable promise, what kind of contract is this?

unilateral

What statement made in an insurance application by the insured that is the absolute truth?

warranty